PRESIDENT BUSH: Good morning. Thanks for coming. A couple of
opening statements and then we'll answer two questions from each side.

It is my honor to welcome, back to the White House, my friend, and
our ally, Prime Minister John Howard. He is a close friend of mine. I
appreciate the frequent discussions we have. I value his advice. I
appreciate his clear vision.

Our two nations were allies in every major conflict of the last
century. We've each lost citizens in the first war of the new
century. I will never forget standing with the Prime Minister on
September the 10th, 2001, the day before the world changed forever.

Americans will never forget the vicious attack in Bali which
claimed the lives of dozens of innocent Australians. Today,
Australians and Americans are standing together on the front lines of
freedom. As members of the common coalition our two nations helped to
free the people of Afghanistan and Iraq from the grip of tyranny. Today
we're working together to help the Afghan and Iraqi people build free
societies and prevent tyranny's return.

Today the Prime Minister and I discussed our coalition's progress
in Iraq. That country took a major step two days ago when the new
interim government was named. That government will assume full
sovereignty later this month. Our coalition will remain in Iraq to
help them along the path of freedom. The new Iraqi government's
foremost task will be to prepare Iraq for a national election no later
than January of next year. And to work with our coalition to provide
the security that will make that election possible. A sovereign Iraq
deserves the full support of the international community as it works to
establish a representative and freely elected system of government in
the months ahead.

We're working toward a new Security Council resolution that will
express international support for Iraq's interim government, reaffirm
the world's security commitment to the Iraqi people and encourage other
U.N. members to join in the effort of building a free Iraq. I
appreciate the Prime Minister's advice and support for the ongoing
process. Today, I'll leave for Europe, and then we'll host the G8
Summit.

I will continue to discuss with world leaders our common
responsibility to help the new government of Iraq, and our common
opportunity to help the -- advance the momentum of freedom in the
broader Middle East. Freedom must succeed in Iraq. In the long run,
the defeat of terror requires the triumph of hope. A free Iraq rising
in the heart of the Middle East will show the people of that region a
clear alternative to the bitterness that feeds terror. Freedom is the
true foundation of stability, prosperity and peace. By working for
freedom in the Middle East we make America, Australia and the world
safer.

The United States and Australia are committed the principles of
human dignity. Today, I assured the Prime Minister that my nation will
conduct a full accounting of the cruel and disgraceful abuse of Iraqi
detainees. He strongly reflected his government's and the Australian
people's desires to make sure that the Australians being held in
Guantanamo are not only treated fairly, but their cases are brought to
finality. And I appreciated your candid discussion, Mr. Prime
Minster.

We also, of course, discussed issues that affect our economies.
Just last month our two nations signed an important free trade
agreement that would eliminate nearly all tariffs on manufactured
goods, open international markets and deepen our strong economic ties.
This agreement is good for both countries. And our Congress and the
Australian Parliament should ratify the free trade agreement as soon as
possible. I assured the Prime Minster that I'll work with leadership
in the Congress, in our Congress, to move this agreement forward.

Australia and the United States have never been closer. Our
closeness is based on a shared belief in the power of freedom and
democracy to change lives. As the Prime Minster has said, the war on
terror is not a contest of civilization it is a contest of
convictions. Our victory hinges on the free world's willingness to
protect and encourage democratic values. I look forward to seeing the
Prime Minister in France later this week as we commemorate the Normandy
landings. It will be a fitting time to remember our partnerships in
past wars of freedom, as well as the sacrifices we have made together
in our current struggle.

Mr. Prime Minister, welcome.

PRIME MINISTER HOWARD: Thank you, Mr. President. May I express to
you personally and to your wife, Laura, and to the members of your
administration my gratitude for the very warm welcome that you've
extended to me and my wife, and the other members of my party. You
reminded me, Mr. President, that the first occasion on which we met in
our respective positions was, indeed, the 10th of September, 2001, at
the Naval dockyard not far from here, and then we later continued our
discussions at the White House.

Since then, we have worked together not only as leaders of two
countries that share the values of democracy, that share the values of
aspirational people who believe in economic achievements and individual
liberty, but we've also worked together very closely in the war against
terror. We continue to work closely with you and share your
aspirations for a free and democratic Iraq.

The establishment of the Iraqi interim government is a major step
forward. It is a light to the future, so far as Iraq is concerned. It
is a visible demonstration of the willingness of Iraqi leaders to stand
before their people and to show leadership.

The Western world, the countries of the free world have a lot at
stake in relation to Iraq. If the democratic future of Iraq can be
achieved, that will have beneficial consequences not only in Iraq, but
it will also be a wonderful demonstration in the Middle East and around
the world that democracy is not something which is confined to
countries that have historically enjoyed it. I regard that as
something of an arrogant attitude on behalf of those who think that, in
some way, democracy cannot be extended to countries that haven't
regularly enjoyed it over past decades.

In recent weeks, the news out of Iraq has not been as positive as
we would have liked, and the reasons for that are understood. But that
has not altered Australia's view. We will keep a presence in Iraq. We
will maintain a presence in Iraq until the job assigned to the
individual force elements of the ADF have been completed. This is not
a time -- it is the worst time imaginable -- for allies to be showing
any weakness in relation of the pursuit of our goals in Iraq. And I
express my strong support for the leadership that the President has
continued to display, particularly through some of the more difficult
aspects of recent weeks.

We did take the opportunity of canvassing the free trade agreement,
and I share very much the President's hope that the legislative
processes in both of our countries can be disposed of as soon as
possible. From Australia's point of view, this is a great opportunity
to link our strong economy with the strongest economy the world has
ever seen.

The economic relationship between Australia and the United States
can only get better in so many areas, and I had the opportunity in
California of discussing growing energy links between our two
countries.

I've welcomed the assurances the President has given me regarding
the proper treatment of the two Australian detainees in Guantanamo
Bay.

I also want to take this opportunity of emphasizing that the
relationship between our two countries, which goes back a long way, to
which the President referred, is very much a relationship which is
built on shared values. We are both countries that treasure the
democratic tradition. We are both countries that treasure individual
freedom. We are both countries that believe in individual effort and
reward for that effort.

Ours is a society, as is the United States, that encourages people
to work hard and to seek reward for that hard work, and, providing they
pay their fair share of tax, to keep what they earn, and to build on
it, and to invest for the future. Unless you have an aspirational
society built on those principles, economic progress cannot be
achieved.

We have been through as nations many struggles together. As the
President said, we've been engaged together in every major conflict,
beginning in World War I. But the thing that binds us together more
than anything else is a common belief in certain fundamental values.
And for me, the greatest opportunity that an occasion such as this
presents is to reaffirm that common commitment.

We will differ, we will have changed emphasis. We will not agree
on everything. But at the end of the day, if you share values in
common, the relationship between two nations will always be sure, will
always be predictable and, above all, will be enduring.

PRESIDENT BUSH: Thanks, John.

Terry.

Q Mr. President, why have you consulted an attorney in the
CIA leak investigation? Have you received any indication from
prosecutors that they want to question you? And what could you tell
them that might shed some light on this case?

PRESIDENT BUSH: I've told our administration that we'll fully
cooperate with their investigation. I want to know the truth, and I'm
willing to cooperate myself. And you need to refer your questions to
them.

In terms of whether or not I need advice from my counsel, this is a
criminal matter, it's a serious matter, I have met with an attorney to
determine whether or not I need his advice. And if I deem I need his
advice I'll probably hire him.

Q Mr. President --

PRESIDENT BUSH: Yes.

Q The Prime Minister said he got an assurance from you that
the two Australians in Guantanamo Bay will get fair treatment. Can you
give a guarantee they haven't been mistreated to this point, and when
will you make a decision, or when will there be a decision made on
whether they face trial?

PRESIDENT BUSH: Yes. It is my understanding that Hicks -- the
Hicks case will be referred to the military shortly; and that the other
case is proceeding, as well. And we are -- the military is fully
investigating any allegations as to whether or not they have been
mistreated.

Let's see here. Morgan -- David Morgan. Is that you?

Q That's me.

PRESIDENT BUSH: Okay.

Q Mr. President, Secretary Powell has made it clear that Iraq
would have no veto power over U.S.-led forces after the formal handover
on June 30th. Why do you believe that countries like France and Russia
would back a U.N. Security Council resolution if the understanding is
that it would leave the Iraqi government powerless to stop an unwelcome
military offensive within its borders?

PRESIDENT BUSH: Let me tell you this: The government of Iraq will
be fully sovereign. And that means that our coalition will be there
with the consent of the fully sovereign government. And that's what
the U.N. resolution is going to say.

Now, Prime Minister Allawi has made it clear that he wants help
from the coalition to deal with the security issues so that the country
can have free elections, that's what he has said. He is the Prime
Minister and that's what he had said. We've had these arrangements
before, these security arrangements with other countries. We're good
about forging relationships on the ground; respecting the sovereignty
of the country; and at the same time being able to do our jobs that the
host government expects to be done. And I am confident we'll work out
a mutually acceptable security arrangement with the fully sovereign
Iraqi government.

No other questions? This is unbelievable. You better hurry -- no,
no, no -- Australian -- sorry, Elizabeth, you're not Australian.
That's the second time in a row.

PRIME MINISTER HOWARD: Mr. Lewis, Steve Lewis, The Australian.

PRESIDENT BUSH: Nice try, though. She tried to become
Australian. (Laughter.)

Q President Bush, I'd like to ask you a question --

PRESIDENT BUSH: Where are you? There you are.

Q Just here.

PRESIDENT BUSH: Thank you.

Q Mr. Howard and yourself reaffirmed the commitment that
Australia and the U.S. have to staying the course in Iraq. But you
would be aware the alternative prime minister in Australia, Mark
Latham, has promised to withdraw Australian troops from Iraq by
Christmas --

PRESIDENT BUSH: Yes.

Q -- if he wins the election. What signal --

PRESIDENT BUSH: Yes, yes --

Q What signal would that send to the Iraqi people and the
other members of the coalition?

PRESIDENT BUSH: I think that would be disastrous. It would be a
disastrous decision for the leader of a great country like Australia to
say that, we're pulling out. It would dispirit those who love freedom
in Iraq. It would say that the Australian government doesn't see the
hope of a free and democratic society leading to a peaceful world. It
would embolden the enemy who believe that they can shake our will.
See, they want to kill innocent life because they think that the
Western world and the free world is weak; that when times get tough we
will shirk our duty to those who long for freedom, and we'll leave.
And I -- anyway.

Q Mr. President, can I ask you and Prime Minister Howard -

PRESIDENT BUSH: No, you can't anymore. Thank you all very much
for coming.